Apply your understanding of the relationships among the financial statements to

Apply your understanding of the relationships among the financial statements to

Apply your understanding of the relationships among the financial statements to answer these questions.a. How can a business earn large profits but have a small balance of retained earnings?b. Give two reasons why a business can have a steady stream of net income over a six-year period and still experience a cash shortage.c. If you could pick a single source of cash for your business, what would it be? Why?d. How can a business be unprofitable several years in a row and still have plenty of cash?